HomeMy WebLinkAboutMinutes - Municipal Property Corporation Board - 3/19/2001 MINUTES
ORO VALLEY MUNICIPAL PROPERTY CORPORATION
STUDY SESSION
MARCH 19,2001
HOPI ROOM
DEVELOPMENT SERVICES BUILDING
11,000 NORTH LA CANADA DRIVE
CALL TO ORDER: 5:40 P.M.
ROLL CALL
PRESENT: Steve Lucas, President
Bob Horn, Member
EXCUSED: Tom Vetrano, Treasurer
STAFF PRESENT: Chuck Sweet, Town Manager
David Andrews,Finance Director
Alan Forrest,Utility Director
Dan Dudley, Town Attorney
Jim Peterson, Intergovernmental Relations
1. REVIEW OF ORO VALLEY WATER UTILITY HISTORY
Chuck Sweet, Town Manager, Alan Forrest, Utility Director and Jim Peterson,
Intergovernmental Relations, gave the background of how the Oro Valley Water Utility
Department was formed.
Mr. Sweet distributed a copy of the Sample Ballot of the Special Election of March 9,
1993. He explained that the voters approved the development of a municipal water
system. He further explained that after the election, extensive research was done to
gather information pertaining to water use and service. Mr. Sweet also distributed a copy
of the report entitled "Domestic Water Providers in the Town of Oro Valley - History
Status Regulatory Environment and Management Option."
2. REVIEW OF 1996 WATER COMPANY PURCHASES AND DEBT
ISSUANCE
Mr. Sweet explained that in late 1995 and early 1996 the Town conducted an evaluation
of the Canada Hills Water Company and the Rancho Vistoso Water Company. He
reported that after achieving the market value price the Town was in simultaneous
negotiations with the owners of the water companies and purchased both companies by
the end of April 1996 using the Municipal Property Corporation Excise Revenue Bonds
in the amount of 28.5 million dollars.
3/19/2001 Minutes 2
Municipal Property Corporation
Study Session
Mr. Andrews reported how the funds would be raised for the infrastructure. He explained
that the Town has pledged Excise Tax Revenue Bonds as security for the repayment,
which would be reimbursed through the water rates. He reported that the Oro Valley
Water Company currently provides service to approximately 15,000 customers.
3. DISCUSSION REGARDING RESOLUTION NO. (R)01-01 ISSUANCE OF
$15,000,000 OF EXCISE TAX REVENUE BONDS, SERIES 2001
There was discussion concerning the current negotiations between the Town and the City
of Tucson regarding water right issues in the northwest corridor. Mr. Andrews reported
that an agreement had not yet been reached. He also reported that based upon the
Council decision the funds would be taken out of the Excise Tax Revenue Bonds, Series
2001 and suggested the Commission should not exceed the $15,000,000.00.
ADJOURNMENT
A MOTION was made by Bob Horn and SECONDED by Steve Lucus to adjourn the
study session at 6:40 p.m. Motion carried 2-0.
Respectfully submitted,
Li a Hersha, Secretary II